Two Florida members of Congress are renewing calls for a federal investigation into the diversion of $10 million from a Medicaid-related settlement, after a state grand jury concluded the money was misappropriated and millions ultimately flowed to political efforts that opposed marijuana legalization.
U.S. Reps. Kathy Castor (D-FL) and Darren Soto (D-FL) sent a letter to the U.S. Department of Health and Human Services Office of Inspector General and the Centers for Medicare & Medicaid Services (CMS), asking federal officials to determine whether federal Medicaid laws were violated and who was responsible for the movement of the funds.
The lawmakers previously requested a federal investigation in May 2025, but said the newly disclosed grand jury findings provide additional information requiring further scrutiny.
As previously reported by The Marijuana Herald, the grand jury examined $10 million from a $67 million settlement between Florida and health care company Centene. The settlement directed $57 million to the state and $10 million to the Hope Florida Foundation, an organization tied to First Lady Casey DeSantis.
Hope Florida subsequently distributed the $10 million through two $5 million grants to Secure Florida’s Future and Save Our Society From Drugs. The organizations then transferred a combined $8.5 million to Keep Florida Clean, a political committee chaired at the time by James Uthmeier, who was Governor Ron DeSantis’ chief of staff and is now Florida attorney general. Keep Florida Clean was involved in the campaign against Amendment 3, the 2024 initiative that would have legalized recreational marijuana for adults 21 and older.
The grand jury concluded that the $10 million was misappropriated as part of a “sophisticated scheme to fund political activities,” while finding insufficient evidence to criminally charge anyone because investigators could not establish who made the decision to direct the money to Hope Florida.
Castor and Soto said that outcome should not end scrutiny of the matter.
“These findings and gross abuse of taxpayer dollars demand immediate federal action,” the lawmakers wrote.
The congressional letter also highlights the speed of the transaction. Centene was required to transfer the $10 million to Hope Florida within seven days, while receiving more than a year to repay the remaining $57 million. The grand jury said it believed the settlement was rushed because the 2024 election was just 45 days away.
The lawmakers are asking CMS and the inspector general to determine whether the transfer of settlement money through private organizations and political committees complied with the Social Security Act, federal Medicaid regulations, Florida’s Medicaid state plan and other federal requirements. They also want CMS to review other Florida Medicaid-related settlements for similar third-party payments or unreported recoveries.
Florida previously returned the federal share associated with the full $67 million settlement. Castor and Soto argue that repayment does not resolve broader questions about whether taxpayer money was improperly diverted or who authorized the transactions.
Amendment 3 received 55.9% support from Florida voters in November 2024, falling short of the 60% required to amend the state constitution.